Water authority proposes price cuts

Wannon Water has proposed reducing its profits to allow it to pass on price reductions to its customers.

The company has released for public comment a draft water plan that will come into effect from next year.

Wannon Water's chief executive, Grant Green, says the company will need to do less capital works over the next five years.

He says the Essential Services Commission will need to approve any profit reduction and price cuts.

"We've been talking with the Essential Services Commission about our intention to reduce our revenue requirement by 1 per cent and we are seeking feedback from customers on how we should allocate that money by way of price reduction," he said.